Requires regulatory agencies to adopt the least costly rule considered during the rule-making process, unless the additional benefits of a more costly rule justify its additional costs (Sec. 3).

Requires regulatory agencies to publish advance notice of proposed rules in the Federal Register and provide opportunities for public hearings and public comment for the following types of rules (Sec. 3):

Major rules;

High-impact rules; and

Rules involving "novel" legal or policy issues.

Defines a "major rule" as any rule that the Office of Information and Regulatory Affairs determines is likely to result in the following (Sec. 2):

An annual cost on the economy of at least $100 million, adjusted annually for inflation;

A "major increase" in costs or prices for consumers, individual industries, governments, or regions;

"Significant adverse effects" on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises; or

"Significant impacts" on multiple sectors of the economy.

Defines a "high impact rule" as any rule that the Office of Information and Regulatory Affairs determines is likely to result in an annual cost on the economy of at least $1 billion, adjusted annually for inflation (Sec. 2).